The mortgage crisis and subsequent tightening of credit by lenders has made tapping home equity more challenging. People who took out a home equity line of credit (HELOC) before the crisis occurred have been thanking their lucky stars that they still have access to funds, especially if they lost their jobs, had emergency medical expenses, or experienced a reduction in the value of their portfolios. Unfortunately, some banks started to freeze those credit lines, making that last lifeline unavailable to those who needed it most.

How to Protect Yourself from HELOC Disaster

Sometimes, something that you think is safe can turn into something quite dangerous. Like golfing, one of the safest sports known to man. Or is it? A golfer in California recently hit a routine stroke. The ball hit a rock and actually started a fire, which enflamed 25 acres and required 150 firefighters to tame it. While a home equity line of credit (HELOC) seems potentially less harmful than a golf ball, the results could also be explosive if you use it incorrectly. Here are four ways to avoid being burned by your HELOC.